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Fast Money 360: Caterpillar

With shares of Caterpillar about 20% higher over the past 3 months, how should you game this stock into – and in the wake of – earnings.

Seems like a good time for Fast Money 360.

Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock.

FUNDAMENTALS

Stephen Volkmann of Jefferies thinks the stock has a great deal of potential due to the company’s global presence.

”You have an emerging markets growth story happening and then what you have is a sort of more developed markets – let’s call it a snap back story – where things have just fallen so far so fast that you are looking at some pretty strong comparisons,” he says.

Volkmann feels these catalysts are quite bullish in the long-term. “I think they are going to continue to have double-digit top line growth for the next couple of years.”

TECHNICALS

Patterns in the charts of Caterpillar tell a different tale entirely. Oppenheimer’s Carter Worth is bearish.

“Having jumped from a low of $63 all the way into the low $80s again it is too far too fast and we think it already reflects whatever good news might be coming,” he says.

“I’m a seller of Caterpillar going into earnings,” he concludes.

OPTIONS

Scott Nations of Nations shares leans toward the bearish camp. “When it comes to CAT, I tend to be a seller,” he states plainly.

INSIGHTS FROM THE FAST MONEY TRADERS

My clients are selling Caterpillar and buying Deere, says Steve Grasso. That's because CAT has construction exposure and Deere is more of an ag play.

I think CAT is a well run company and I wouldn't not be short, says Steve Cortes, but I can't be excited either. Not with China raising rates in an obvious move to slow their growth.


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Trader disclosure: On Oct.19, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Cortes is short oil; Cortes is short gold; Cortes is short the Euro; Cortes is short (RSX); Cortes owns the S&P 500;Finerman owns (AAPL); Finerman & Finerman’s firm own (BAC); Finerman & Finerman’s firm own (JPM); Finerman’s firm owns (IBM); Finerman’s firm owns (SKS); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (AAPL) call spread; Pete Najarian owns (BAC); Pete Najarian owns (CRUS); Pete Najarian owns (MS); Pete Najarian owns (YHOO); Pete Najarian owns (DO); Pete Najarian owns (DD); Pete Najarian owns (CNI); Pete Najarian owns (NOV); Pete Najarian owns (TEVA); Pete Najarian owns (NFLX) call spread; Pete Najarian owns (BMC) call spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (RDN) call spreads; Pete Najarian owns (STX) call spreads; Pete Najarian owns (TSO) call spreads; Pete Najarian owns (LNC) call spreads

For Steve Grasso:
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Stuart Frankel & Co and it’s partners own (CUBA)
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Stuart Frankel & Co and it’s partners own (HSPO)
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Stuart Frankel & Co and it’s partners are short (QQQQ)

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For Rich Ilczyszyn
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For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (DPS)

For Scott Nations
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For Jordan Rohan
Stifel, Nicolaus & Company, Inc. or an affiliate is acting as exclusive financial advisor to Rivals.com in its pending sale to (YHOO)
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